Speaking to the press after signing an agreement for construction of a new Dh180 million head-office building, Omar Abdel Rahim Leyas, the general manager of the Commercial Bank of Dubai, said that the bank expects its profits to increase by 7 percent, from the Dh385 million figure registered in 1999.
Leyas said that the new CDD headquarters are expected to be completed by 2002, and will be only one of the elements of the bank’s new commitment for economic growth. The bank soon will be opening branches in Abu Dhabi and Fujairah.
When asked about the current level of interest rates on savings, he stated that the current rate 6.4 percent on saving deposits offered by SBD was adequate. Quoted in the Khaleej Times, he criticized as unfair other banks who were offering 7 percent rates in order to attract investors.
Leyas explained CBD’s traditionally conservative policy when it comes to loans. He stated that the bank's policy is to help as much as possible, any segment of society, but not at the price of putting its clientele at undue risk.
Quoted in the Khaleej Times, Yacoub Yousuf, the bank’s deputy general manager, pointed to a phenomenon of indebtedness among younger people from low and medium income groups, as a result of access to unrestricted credit facilities. CBD is careful when it comes to providing facilities to such sectors of the population, he said, emphasizing that it the bank’s objective is to help them build their future and not destroy it by giving them a false sense of security. – (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)
